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NOVEMBER 29, 1993 Schertz Development Foundation Board of Directors Meeting Minutes November 29, 1993 Schertz Municipal Complex Item l. The meeting of the Schertz Development Foundation Board of Directors was called to order at 7:00 p.m., November 29, 1993 by Vice Chairman Tom Weaver. Members present Mr. Tom Weaver, Mr. Lou Borgfeld, Mr. Kerry Sweatt, Mr. Charles MCDonald, Mr. Mark Marquez, Ms. Denise Granger Rec. Sec. Item 2. Mr. Mark Marquez asked to send a letter of appreciation to Mr. Jack Garber for his service as his term of office has expired. Jackie Jones of Pacific Southwest Bank was nominated to replace Mr. Garber. The Board voted unanimous approval. Ms. Jones' name will be forwarded to City Council for approval. Item 3. The board discussed a proposal from Mr. Jim Winn on the purchase of a lot. Mr. Winn proposed to buy a lot, with a $3500.00 down payment, and the Foundation to carry the note. After discussion the board consensus was that the Foundation was not interested in being a banker. Mr. Borgfeld then presented a proposal by Guadalupe Valley Development Corporation ((GVDC)) to buy lot #11 and build a speculative building. The bid price was $4,000.00. During discussion the following conditions were developed: a. accepted. The bid price of $4,000.00 for lot #11 was b. The Foundation would pay $3,125.00 to GVDC for release of the lot. c. brokers. The Foundation would pay $400.00 to the listing costs. d. Any remaining proceeds would be applied to closing e. The Foundation would not pay any further costs in excess of $4000.00 for the transaction. f. A building of approximately 4000 square feet would be built on the property. Construction to begin no later than 90 days from closing. Building completion would be within 180 days of construction start, with a weather delay allowance. g. That the proposal from GVDC be made a matter of record in the minutes. -1- A motion was made and seconded to accept the GVDC offer under the conditions stipulated above. The Board voted unanimously in favor, with Mr. Borgfeld abstaining. A second motion was made and seconded providing authority for the President and the Executive Director to sign all necessary and related documents to complete this transaction. (This resolution will be codified by our attorney for purposes of the title company.) Item 4. Payment of Taxes/Audit Expense. Director requested authority to pay current partial payment of the current audit as available. A motion was made and seconded request. The Executive taxes and the funds become approving the Item 5. Mark Marquez advised that Entex Gas had requested an easement to run a gas main from the end of Commercial Place to Mr. Vallance's property. While the Board had no objections, we could not get into contact with the other land owners. Entex has obtained an easement from the City of Schertz Public Works Department along their water easement adjacent to Schertz Business Park. Mr. Marquez also requested consideration of a grant to Mr. Vallance to offset his costs of approximately $3400.00 Mr. Vallance for the improved gas access along the west side of Commercial Place. Mr. Vallance did obtain an agreement with Entex that provides for a $250.00 reimbursement to Mr. Vallance for each connection. It was the consensus of the Board that this request be denied. Two reasons were cited. First, the Foundation currently does not have the resources and second, the developers agreement should more than reimburse Mr. Vallance for his expenses. (Correction on 11 Jan, 94: Mr Borgfeld abstained from this discussion.) Item 6. Mr. Marquez described an issue that has arisen over the prices we are asking for the Schertz Business Park properties. We have an established price (.50 per square foot) to be used by our listing broker, yet when a prospect comes along we seem to be willing to significantly alter that price. A more consistent policy is needed, not only for our brokers, but for our own marketing uses when we are working with a prospect. A motion was made that lots in SChertz Business Park will be sold for .23 per square foot if construction of a building begins within 90 days, such building to cover at least 20% of the lot, and meet the standards of the existing covenants. Completion of the building must be within 180 days from start of construction, weather permitting. Current asking price will remain .50 per square foot. -2- Item 7. Several Board members have expressed concern over the lack of activity generated by our listing brokers. Members have begun to question whether we need to have brokers to market the Schertz Business Park property. By consensus, the Executive Director was directed to speak to our listing brokers with a view to terminating the current agreement. No other brokers were to be considered to replace them. Item 8. Discussion was held on a proposal by the City of Schertz to purchase lots 2, 3, and 4, in Schertz Business Park. Mr. Sweatt left the meeting during this discussion. The City's proposal was to buy the three lots a .35 per square foot, at a cost of $28,470.00, with a $1,500.00 credit for prior year maintenance (mowing) of the entire park, and a 4 year agreement to continue maintenance at $1,500.00 per year for a total credit of $7,500.00. Cash price would be $20,970.00. There also would be no requirement for building construction. Closing costs would be equally shared. The Foundation would pay 1993 taxes when due. A motion was made and seconded to accept this offer. The Board voted unanimously to accept the offer, with Mr. Sweatt absent from this vote. Mr. Sweatt was advised of Foundation acceptance of the City's offer upon his return to the meeting. Mr. Sweatt will take the proposal to City Council on the 7 December, 1993 meeting for City Council approval. A motion Executive the sale. was made and seconded authorizing the President and Director to sign all necessary documents to complete The Board voted unanimously to approve the motion. Item 9. None Item 10. At the last meeting the President directed the Executive Director to obtain the cost of the property donated by the Foundation to the City. The property was a self-propelled roller and a self-propelled "sheepsfoot". The value was established at $447.30. Item 11a. During planning of the 4th Annual Business Appreciation Dinner, organizers were advised that the Foundation would provide a letter to the businesses that donated goods and services (primarily the food vendors) citing their donation as a charitable contribution for Federal tax purposes. Four businesses took advantage of the offer, and a sample letter was reviewed by the members. -3- Item 11b. Recording responsible duties for Foundation of Schertz. As of this meeting the Foundation will have a Secretary, Ms. Denise Granger, who will be for the minutes and other necessary administrative the Foundation. Ms. Granger will be paid by the through a reimbursement arrangement with the City Item 12. None Item 13. The next meeting date is scheduled for 10 January, 1994 at 7:00 p.m. in the Municipal Complex Conference Room. Item 14. . The meeting was adjourned p.m. &.~ ' 1VAlf..-- ~ a/rxyV Denise Granger Recording Secretary , ,/ ~'\ .......-' --, -4-